Kaolin Industry Announces Economic Figures for the Year 2002
 

Macon, Georgia - The China Clay Producers Association announced today the composite earnings for the four major kaolin producers in 2002.  The industry posted an after tax profit of $36 million which represents a return of 4.2% on the net investment. 

"The kaolin industry has struggled in recent years, and it is gratifying to see a return to positive numbers,” said Lee Lemke, Executive Vice President of the China Clay Producers Association.  “This industry has had a dismal five years.  Profitability has averaged less than one percent for the five year period with significant losses reported in 2000 and 2001.” 

 “The return to profitability in 2002 can be attributed to the restructuring that the kaolin companies accomplished as well as an improved market,” said Lemke.  The industry has continued to reduce payroll and expenses.  Direct employment in the industry now stands at 2640, down from its peak of 4500.  Restructuring has resulted in a shutdown of older unprofitable assets, which has reduced the net investment almost 30% for the four companies that remain in the kaolin business. The industry’s investment in Georgia now stands at $860 million.

 “The economy in Middle Georgia is tied to the kaolin industry.  While we are gratified by the 2002 results, we must continue to improve our after tax profitability to encourage our employees and shareholders and to stabilize this vital industry,” reported Lemke. 

 For further information, please contact Lee Lemke via mail at 4885 Riverside Drive, Suite 108, Macon, GA 31210; via telephone at (478) 757-1211; via fax at (478) 757-1949; or via e-mail at leelemke@georgiamining.org.

 The China Clay Producers Association members are Engelhard Corporation, Gordon, GA; IMERYS, Atlanta, GA; J.M. Huber Corporation, Atlanta, GA; and Thiele Kaolin Company, Sandersville, GA.